Transnet Shortlists Respondents from The RFQ Process for DCT Pier 2 and NCT

Transnet SOC Limited (“Transnet”) has reached a significant milestone in its programme to upgrade two of South Africa’s key ports, with the shortlisting of respondents for private sector participation in the Durban Pier 2 and Ngqura Container Terminals (DCT2 and NCT). The intention is to create a 25-year special purpose vehicle (SPV) between Transnet Port Terminals (TPT) and the winning bidders, and therefore no disposal or sale of the asset. After 25 years the terminals would revert fully to TPT.

Transnet will issue Request for Proposals (RFPs) to the shortlisted respondents from the Request for Qualifications process, which is the third phase in the process to upgrade the two terminals. The process started with the issuing of Requests for Information (RFI) to the market in 2021. The RFI process was initiated to establish appetite from industry to partner with Transnet in the port improvement plans intended to increase throughput and efficiencies at the ports, and to ensure full utilisation of the capacity in Ngqura in particular, and thus contribute positively to South Africa’s competitiveness.

The improvement in port efficiencies will support South Africa’s competitiveness and our ability to grow jobs in the manufacturing and export economy. Partnering with global port terminal operators and shipping lines offers the opportunity to attract much-needed investment, instil best-practice management and enhanced technological capability to rapidly improve the performance and volume throughput at the Ports of Durban and Ngqura

Transnet is repositioning Durban as a gateway hub port, and plans for significant growth in container capacity over the coming years. As part of the port masterplans, Transnet aims to improve commercial performance and throughput at DCT Pier 2 by bringing in a partner with international terminal operations experience.

NCT, located at the Port of Ngqura in the Eastern Cape, serves as a transshipment port serving East and West coast African traffic and traffic from South America to Asia. The terminal has been loss-making for a number of years. The preferred bidder will be expected to bring in additional transshipment volumes and improve terminal performance.

The shortlisted companies – ten (10) for Durban Pier 2 and four (4) for Ngqura – will have until December 2022 to submit their proposals for adjudication. The shortlisting is subject to a due diligence process to be undertaken by Transnet

For DCT Pier 2, the following ten (10) respondents have been shortlisted and will be invited to proceed to the RFP process:

1. APM Terminals AMI Management DMCEST
2. China Harbour Engineering Company Ltd and Guangzhou Port Co. Ltd
3. COSCO Shipping Ports Limited
4. DP World Limited
5. Global Ports Services Pty. Ltd
6. Grindrod Freight Services (Pty) Ltd and Hamburger Hafen Und Logistik Aktiengesellschaft
7. International Container Terminal Services, Inc.
8. Red Sea Gateway Terminal and MMC Port Holdings Sdn Bhd
9. Star Classic Investments Limited and Abu Dhabi Ports
10. Terminal Investment Limited and REMGRO Limited

For NCT, the following four (4) respondents have been shortlisted and will be invited to proceed to the RFP process:

1. APM Terminals AMI Management DMCEST
2. Red Sea Gateway Terminal and MMC Port Holdings Sdn Bhd
3. Star Classic Investments Limited and Abu Dhabi Ports
4. Terminal Investment Limited and REMGRO Limited

The preferred bidders for each terminal are expected to be appointed by February 2023.

Source